A full reconciliation of non-GAAP financial measurements is included at the end of this news release

"Our third quarter results continue to demonstrate the success of the new Bristow in the face of ongoing industry challenges," said Jonathan Baliff, President and Chief Executive Officer of Bristow Group. "Our adjusted EBITDA was better than expected in the third quarter led by higher revenue from increased flying activity across several regions, while also benefiting from the operating leverage created by our lower cost hub structure. In addition, the third quarter benefited significantly from OEM cost recoveries, which, when coupled with capex deferrals, revenue improvement and cost control measures, delivered a significant increase in cash and liquidity."

BUSINESS AND FINANCIAL HIGHLIGHTS

Our operating revenue showed continued improvement year-over-year as all U.K. SAR bases are fully online, fixed wing services were accretive, and oil and gas service activity benefited from short-term activity in the North Sea off Norway and in the U.S. Gulf of Mexico. In addition, during the December 2017 quarter, we recovered $125 million in OEM costs resulting in a $13.1 million reduction in rent expense (included in direct cost) and a corresponding increase in adjusted EBITDA.

We are raising our fiscal 2018 adjusted EBITDA guidance to $100 million - $115 million from $55 million - $85 million provided in November 2017, as a result of better than expected operational and financial performance including OEM cost recoveries.

We had $505.4 million of total liquidity as of December 31, 2017, an increase of $116 million or 30% in the December 2017 quarter; we are raising our liquidity guidance as of March 31, 2018 to a range of $450 million to $480 million, an increase of approximately $40 million over our November 2017 guidance, primarily due to the issuance of $143.8 million of 4½% Convertible Senior Notes due 2023, net of amounts used to pay down existing bank debt.

"I am incredibly proud of our team members who are delivering on our fiscal 2018 priorities of safety improvement, cost efficiencies, portfolio management and increased revenue," said Jonathan Baliff. "While the third quarter results tangibly demonstrate efforts like the OEM cost recoveries, the remainder of fiscal 2018 will remain challenging due to continued oversupply of aircraft and limited visibility into our clients' demand for aviation services. Our lower cost structure works for our clients, but we must continue to improve Target Zero safety as we successfully compete in a short cycle market that will likely continue into fiscal 2019."

Operating revenue from external clients by line of service was as follows:

Three Months EndedDecember 31,

2017

2016

% Change

(in thousands, except percentages)

Oil and gas services

$

236,655

$

232,287

1.9

%

Fixed wing services

52,476

44,811

17.1

%

U.K. SAR services

55,659

45,193

23.2

%

Corporate and other

738

2,062

(64.2)

%

Total operating revenue

$

345,528

$

324,353

6.5

%

The year-over-year increase in revenue was primarily driven by an increase in U.K. SAR services revenue due to additional bases coming online in fiscal years 2017 and 2018, an increase in our fixed wing services in our Europe Caspian, Asia Pacific and Africa regions and an increase in operating revenue for our oil and gas services primarily in our Americas and Europe Caspian regions due to an increase in activity. The activity level increase across our business was driven mostly by short term contracts, ad hoc and increased flying on existing contracts as we continue to see some stability in certain markets, especially in Norway and in the U.S. Gulf of Mexico.

The year-over-year change in net loss and diluted loss per share was primarily driven by one-time income tax benefits, higher revenue in the December 2017 quarter as discussed above, lower rent expense resulting from OEM cost recoveries in the December 2017 quarter and impairment charges on goodwill recorded in the December 2016 quarter that did not recur in the December 2017 quarter. These favorable changes were partially offset by higher interest expense and a higher loss on disposal of assets in the December 2017 quarter.

The GAAP net loss and diluted loss per share for the December 2017 quarter included the following special items:

Organizational restructuring costs of $2.8 million ($2.5 million net of tax), or $0.07 per share, included in direct cost and general and administrative expense, resulting from separation programs across our global organization designed to increase efficiency and reduce costs, and

A non-cash benefit from tax items of $15.1 million, or $0.42 per share, including a $75.6 million benefit related to the revaluation of net deferred tax liabilities to a lower tax rate resulting from the enactment of the Tax Cuts and Jobs Act (the "Act") in December 2017 and ongoing impact of valuation of deferred tax assets and recent financings of $1.0 million, partially offset by the impact of deemed repatriation of foreign earnings under the Act of $61.5 million.

Additionally, we had a loss on disposal of assets of $4.6 million ($2.5 million net of tax), or $0.07 per share, during the December 2017 quarter primarily related to a loss of $3.0 million from the sale or disposal of aircraft and other equipment.

Excluding the effect of special items and the loss on disposal of assets, the year-over-year change in adjusted net loss and adjusted diluted loss per share is primarily driven by an adjusted income tax expense in the December 2017 quarter compared to an adjusted income tax benefit in the December 2016 quarter and an increase in interest expense, partially offset by the increase in U.K. SAR, fixed wing services and oil and gas services revenue and the benefit from the OEM cost recoveries discussed above. The year-over-year change in adjusted EBITDA was primarily driven by the same increase in revenue and benefit from OEM cost recoveries.

The December 2016 quarter was also impacted by special items as reflected in the table at the end of this release.

LIQUIDITY AND FINANCIAL FLEXIBILITY

Don Miller, Senior Vice President and Chief Financial Officer, commented, "Our liquidity improved significantly by $116 million or 30% to $505.4 million at the end of the December 2017 quarter primarily due to the recovery of OEM costs and the issuance of $143.8 million of our convertible senior notes. In addition, we paid down $135.4 million of our bank term loans and ended the quarter with $400 million available under our revolver, before $12 million in letters of credit. We are raising our liquidity guidance as of March 31, 2018 to a range of $450 million to $480 million from $410 million to $450 million provided in November 2017 as we take actions to improve revenue, reduce cost, manage working capital and leverage our existing assets."

REGIONAL PERFORMANCE

Europe Caspian

Three Months EndedDecember 31,

2017

2016

% Change

(in thousands, except percentages)

Operating revenue

$

189,910

$

172,844

9.9

%

Operating income

$

5,312

$

(303)

*

Operating margin

2.8

%

(0.2)

%

*

Adjusted EBITDA

$

18,614

$

9,123

104.0

%

Adjusted EBITDA margin

9.8

%

5.3

%

84.9

%

Rent expense

$

29,499

$

34,115

(13.5)

%

_____________

*

percentage change too large to be meaningful or not applicable

The increase in operating revenue from the December 2016 quarter to the December 2017 quarter was primarily driven by an increase from the start-up of U.K. SAR bases since the December 2016 quarter, an increase in Norway primarily due to increases in activity and short-term contracts and an increase in fixed wing revenue. Partially offsetting these increases was a decrease in U.K. oil and gas revenue. Eastern Airways contributed $29.5 million and $25.1 million in operating revenue for the December 2017 quarter and December 2016 quarter, respectively.

A substantial portion of our operations in the Europe Caspian region are contracted in the British pound sterling, which depreciated significantly against the U.S. dollar in the December 2016 quarter as a result of Brexit. As a result of the changes in the British pound sterling, adjusted EBITDA was favorably impacted from foreign exchange changes of $0.7 million during the December 2017 quarter compared to an unfavorable impact of $11.3 million during the December 2016 quarter.

During the December 2017 quarter, we recorded a benefit to rent expense within our Europe Caspian region results of $7.1 million related to the OEM cost recoveries. Additionally, during the December 2016 quarter, we recorded an impairment of $8.7 million for the remaining goodwill related to Eastern Airways, which contributed to the operating loss in the December 2016 quarter, but was adjusted for in our calculation of adjusted EBITDA.

Operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin increased in the December 2017 quarter primarily due an increase in operating revenue as a result of increased activity, the benefit to rent expense in the December 2017 quarter related to the OEM cost recoveries and favorable impacts from changes in foreign currency exchange rates, with operating income and operating margin also improving due to the goodwill impairment in the December 2016 quarter. These benefits were partially offset by increased salaries and benefits and maintenance expense year-over-year due to the increase in activity. Eastern Airways contributed a negative $4.1 million and a negative $2.1 million in adjusted EBITDA for the December 2017 quarter and December 2016 quarter, respectively.

Africa

Three Months EndedDecember 31,

2017

2016

% Change

(in thousands, except percentages)

Operating revenue

$

47,915

$

49,587

(3.4)

%

Operating income

$

10,470

$

10,441

0.3

%

Operating margin

21.9

%

21.1

%

3.8

%

Adjusted EBITDA

$

14,206

$

17,012

(16.5)

%

Adjusted EBITDA margin

29.6

%

34.3

%

(13.7)

%

Rent expense

$

2,048

$

1,767

15.9

%

Operating revenue for Africa decreased in the December 2017 quarter due to an overall decrease in activity compared to the December 2016 quarter. Activity declined with certain clients and certain contracts ended, which was only partially offset by an increase in activity with other clients. Additionally, fixed wing services in Africa generated $2.0 million and $1.0 million of operating revenue for the December 2017 quarter and December 2016 quarter, respectively.

Operating income remained flat while adjusted EBITDA and adjusted EBITDA margin decreased in the December 2017 quarter primarily due to the impact of changes in foreign currency exchange rates, which negatively impacted adjusted EBITDA by $2.2 million compared to the December 2016 quarter.

Americas

Three Months EndedDecember 31,

2017

2016

% Change

(in thousands, except percentages)

Operating revenue

$

60,345

$

53,024

13.8

%

Earnings from unconsolidated affiliates

$

2,097

$

831

152.3

%

Operating income

$

5,308

$

2,226

138.5

%

Operating margin

8.8

%

4.2

%

109.5

%

Adjusted EBITDA

$

12,689

$

10,039

26.4

%

Adjusted EBITDA margin

21.0

%

18.9

%

11.1

%

Rent expense

$

6,295

$

5,638

11.7

%

Operating revenue increased in the December 2017 quarter primarily due to an increase in activity from our U.S. Gulf of Mexico oil and gas operations and additional revenue from the search and rescue consortium in the U.S. Gulf of Mexico, partially offset by a decrease in operating revenue in Trinidad and Brazil due to lower activity.

Earnings from unconsolidated affiliates, net of losses, increased $1.3 million primarily due to an increase in earnings from our investment in Líder in Brazil due to reduced salaries and benefits and less of an unfavorable change in exchange rates which decreased our earnings from our investment in Líder by $0.8 million in the December 2017 quarter and decreased our earnings from our investment in Líder by $1.2 million in the December 2016 quarter.

The increases in operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin were driven by the increase in revenue and earnings from unconsolidated affiliates discussed above, partially offset by an increase in rent expense.

Asia Pacific

Three Months EndedDecember 31,

2017

2016

% Change

(in thousands, except percentages)

Operating revenue

$

50,248

$

49,092

2.4

%

Operating loss

$

(941)

$

(9,012)

89.6

%

Operating margin

(1.9)

%

(18.4)

%

89.7

%

Adjusted EBITDA

$

4,797

$

(5,027)

*

Adjusted EBITDA margin

9.5

%

(10.2)

%

*

Rent expense

$

2,807

$

10,247

(72.6)

%

_____________

*percentage change too large to be meaningful or not applicable

Operating revenue increased in the December 2017 quarter primarily due to an increase from our fixed wing operations as Airnorth contributed $21.0 million and $18.7 million in operating revenue for the December 2017 quarter and December 2016 quarter, respectively.

Operating loss, operating margin, adjusted EBITDA and adjusted EBITDA margin improved in the December 2017 quarter primarily due to a benefit to rent expense of $6.0 million recorded in the December 2017 quarter related to the OEM cost recoveries and the increase in operating revenue discussed above. Airnorth contributed $2.2 million and $1.1 million in adjusted EBITDA for the December 2017 quarter and December 2016 quarter, respectively.

Corporate and other

Three Months EndedDecember 31,

2017

2016

% Change

(in thousands, except percentages)

Operating revenue

$

743

$

2,099

(64.6)

%

Operating loss

$

(19,055)

$

(21,575)

11.7

%

Adjusted EBITDA

$

(15,342)

$

(8,229)

(86.4)

%

Rent expense

$

1,971

$

1,885

4.6

%

Operating revenue decreased in the December 2017 quarter primarily due to a decrease in Bristow Academy revenue due to the sale of Bristow Academy on November 1, 2017.

Operating loss was lower for the December 2017 quarter primarily due to the sale of Bristow Academy, which incurred less of an operating loss in the December 2017 quarter compared to the December 2016 quarter. Adjusted EBITDA decreased primarily due to foreign currency transaction losses of $0.3 million recorded in the December 2017 quarter versus foreign currency transaction gains of $10.7 million in the December 2016 quarter.

GUIDANCE

Guidance for selected financial measures is included in the tables that follow.

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Friday, February 9, 2018 to review financial results for the fiscal year 2018 third quarter ended December 31, 2017. This release and the most recent investor slide presentation are available in the investor relations area of our web page at www.bristowgroup.com. The conference call can be accessed as follows:

Live: Click on the link for "Bristow Group Fiscal 2018 Third Quarter Earnings Conference Call"

Replay: A replay via webcast will be available approximately one hour after the call's completion and will be accessible for approximately 90 days.

Via Telephone within the U.S.:

Live: Dial toll free 1-877-404-9648

Via Telephone outside the U.S.:

Live: Dial 1-412-902-0030

ABOUT BRISTOW GROUP INC.

Bristow Group Inc. is the leading global industrial aviation services provider offering helicopter transportation, search and rescue (SAR) and aircraft support services to government and civil organizations worldwide. Bristow has major operations in the North Sea, Nigeria and the U.S. Gulf of Mexico, and in most of the other major offshore oil and gas producing regions of the world, including Australia, Brazil, Canada, Russia and Trinidad. Bristow provides SAR services to the private sector worldwide and to the public sector for all of the U.K. on behalf of the Maritime and Coastguard Agency. For more information, visit bristowgroup.com.

FORWARD-LOOKING STATEMENTS DISCLOSURE

Statements contained in this news release that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements include statements regarding earnings and liquidity guidance, expected contract revenue, capital deployment strategy, operational and capital performance, expected cost management activities, original equipment manufacturer recoveries, expected capital expenditure deferrals and, market and industry conditions. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Risks and uncertainties include without limitation: fluctuations in the demand for our services; fluctuations in worldwide prices of and supply and demand for oil and natural gas; fluctuations in levels of oil and natural gas production, exploration and development activities; the impact of competition; actions by clients and suppliers; the risk of reductions in spending on industrial aviation services by governmental agencies; changes in tax and other laws and regulations; changes in foreign exchange rates and controls; risks associated with international operations; operating risks inherent in our business, including the possibility of declining safety performance; general economic conditions including the capital and credit markets; our ability to obtain financing; the risk of grounding of segments of our fleet for extended periods of time or indefinitely; our ability to re-deploy our aircraft to regions with greater demand; our ability to acquire additional aircraft and dispose of older aircraft through sales into the aftermarket; the possibility that we do not achieve the anticipated benefit of our fleet investment program; availability of employees; and political instability, war or acts of terrorism in any of the countries where we operate. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2017 and annual report on Form 10-K for the fiscal year ended March 31, 2017. Bristow Group Inc. disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.

Eastern Airways operates a total of 32 fixed wing aircraft in the Europe Caspian region and provides technical support for three fixed wing aircraft in the Africa region. Additionally, Airnorth operates a total of 14 fixed wing aircraft, which are included in the Asia Pacific region.

(2)

Includes 9 aircraft held for sale and 102 leased aircraft as follows:

Held for Sale Aircraft in Consolidated Fleet

Helicopters

Small

Medium

Large

Fixed

Wing

Total

Europe Caspian

—

2

—

—

2

Africa

—

1

—

1

2

Americas

—

4

—

—

4

Asia Pacific

—

—

—

1

1

Total

—

7

—

2

9

Leased Aircraft in Consolidated Fleet

Helicopters

Small

Medium

Large

Fixed

Wing

Total

Europe Caspian

—

6

40

14

60

Africa

—

1

2

2

5

Americas

3

14

6

—

23

Asia Pacific

—

3

7

4

14

Total

3

24

55

20

102

(3)

The average age of our fleet was approximately nine years as of December 31, 2017.

(4)

The 114 aircraft operated by our unconsolidated affiliates do not include those aircraft leased from us. Includes 44 helicopters (primarily medium) and 22 fixed wing aircraft owned and managed by Líder Táxi Aéreo S.A. ("Líder"), our unconsolidated affiliate in Brazil included in the Americas region, and 41 helicopters and seven fixed wing aircraft owned by Petroleum Air Services ("PAS"), our unconsolidated affiliate in Egypt included in the Africa region.

(5)

This table does not reflect aircraft which our unconsolidated affiliates may have on order or under option.

BRISTOW GROUP INC. AND SUBSIDIARIES

FY18 GUIDANCE

FY18 guidance as of December 31, 2017 (1)

Operating revenue 2

Adjusted EBITDA2,3

Rent2

Oil and gas

~$875M - $975M

~$40M - $50M 4

~$130M - $140M 4

U.K. SAR

~$215M - $230M

~$55M - $60M 4

~$45M - $50M

Eastern

~$105M - $115M

~$(5M) - $0M 4

~$10M - $12M

Airnorth

~$80M - $90M

~$5M - $10M

~$10M - $12M

Total

~$1.3B - $1.4B

~$100M - $115M 4

~$205M - $215M 4

G&A expense

~$170M - $190M

Depreciation expense

~$120M - $130M

Total aircraft rent 4, 5

~$180M - $185M

Total non-aircraft rent 5

~$25M - $30M

Interest expense 4

~$65M - $75M

Non-aircraft capex

~$40M annually

_____________

(1)

FY18 guidance assumes FX rates as of December 31, 2017.

(2)

Operating revenue, adjusted EBITDA and rent for oil and gas includes corporate and other revenue and the impact of corporate overhead expenses.

(3)

Adjusted EBITDA for U.K. SAR and fixed wing (Eastern/Airnorth) excludes corporate overhead allocations consistent with financial reporting. Adjusted EBITDA is a non-GAAP measure of which the most comparable GAAP measure is net income (loss). We have not provided a reconciliation of this non-GAAP forward-looking information to GAAP. The most comparable GAAP measure to adjusted EBITDA is net income (loss) which is not calculated at this lower level of our business as we do not allocate certain costs, including corporate and other overhead costs, interest expense and income taxes within our accounting system. Providing this data would require unreasonable efforts in the form of allocations of other costs across the organization.

(4)

Updated from guidance provided in November 2017.

(5)

Total aircraft rent and total non-aircraft rent are inclusive of the respective components of rent expense for U.K. SAR, Eastern, Airnorth plus oil and gas.

BRISTOW GROUP INC. AND SUBSIDIARIES

GAAP RECONCILIATIONS

These financial measures have not been prepared in accordance with generally accepted accounting principles ("GAAP") and have not been audited or reviewed by our independent auditor. These financial measures are therefore considered non-GAAP financial measures. A description of the adjustments to and reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measures is as follows:

Three Months EndedDecember 31,

Nine Months EndedDecember 31,

2017

2016

2017

2016

(In thousands, except

per share amounts)

Net loss

$

(9,937)

$

(26,048)

$

(97,079)

$

(97,227)

Loss on disposal of assets

4,591

874

12,418

13,077

Special items

2,810

9,537

16,352

34,361

Depreciation and amortization

31,682

29,768

94,119

93,054

Interest expense

19,237

12,347

54,189

35,170

(Benefit) provision for income taxes

(13,419)

(3,560)

2,546

(11,038)

Adjusted EBITDA

$

34,964

$

22,918

$

82,545

$

67,397

Benefit (provision) for income taxes

$

13,419

$

3,560

$

(2,546)

$

11,038

Tax provision (benefit) on loss on disposalof assets

(2,130)

(1,953)

8,061

(5,858)

Tax provision (benefit) on special items

(15,448)

5,227

(1,272)

10,227

Adjusted (provision) benefit for income taxes

$

(4,159)

$

6,834

$

4,243

$

15,407

Effective tax rate (1)

57.5

%

12.0

%

(2.7)

%

10.2

%

Adjusted effective tax rate (1)

(26.1)

%

37.9

%

6.5

%

29.9

%

Net loss attributable to Bristow Group

$

(8,273)

$

(21,927)

$

(94,757)

$

(92,496)

Loss (gain) on disposal of assets

2,461

(1,079)

20,479

7,219

Special items

(12,638)

12,885

15,080

50,862

Adjusted net loss

$

(18,450)

$

(10,121)

$

(59,198)

$

(34,415)

Diluted loss per share

$

(0.23)

$

(0.62)

$

(2.69)

$

(2.64)

Loss (gain) on disposal of assets

0.07

(0.03)

0.58

0.21

Special items

(0.36)

0.37

0.43

1.45

Adjusted diluted loss per share

(0.52)

(0.29)

(1.68)

(0.98)

_____________

(1)

Effective tax rate is calculated by dividing benefit (provision) for income tax by pretax net loss. Adjusted effective tax rate is calculated by dividing adjusted benefit (provision) for income tax by adjusted pretax net loss. Tax provision (benefit) on loss on disposal of assets and tax provision (benefit) on special items is calculated using the statutory rate of the entity recording the loss on disposal of assets or special item.

Three Months EndedDecember 31, 2017

AdjustedEBITDA

Adjusted

Net Loss

Adjusted

Diluted

Loss

Per

Share

(In thousands, except per share amounts)

Organizational restructuring costs (1)

$

(2,810)

$

(2,501)

(0.07)

Tax items (2)

—

15,139

0.42

Total special items

$

(2,810)

$

12,638

0.36

Three Months EndedDecember 31, 2016

AdjustedEBITDA

Adjusted

Net Loss

Adjusted

Diluted

Loss

Per

Share

(In thousands, except per share amounts)

Organizational restructuring costs (1)

$

(831)

$

(583)

(0.02)

Additional depreciation expense resulting from fleet changes (3)

—

(761)

(0.02)

Goodwill impairment (4)

(8,706)

(7,857)

(0.22)

Tax valuation allowances (2)

—

(3,684)

(0.10)

Total special items

$

(9,537)

$

(12,885)

(0.37)

Nine Months EndedDecember 31, 2017

AdjustedEBITDA

AdjustedNet Loss

AdjustedDilutedLossPerShare

(In thousands, except per share amounts)

Organizational restructuring costs (1)

$

(15,160)

$

(11,337)

(0.32)

Inventory impairment

(1,192)

(775)

(0.02)

Tax items (2)

—

(2,968)

(0.08)

Total special items

$

(16,352)

$

(15,080)

(0.43)

Nine Months EndedDecember 31, 2016

AdjustedEBITDA

AdjustedNet Loss

AdjustedDilutedLossPerShare

(In thousands, except per share amounts)

Organizational restructuring costs (1)

$

(18,083)

$

(12,171)

(0.35)

Additional depreciation expense resulting from fleet changes (3)

—

(6,122)

(0.17)

Goodwill impairment (4)

(8,706)

(7,857)

(0.22)

Inventory impairment

(7,572)

(5,372)

(0.15)

Tax valuation allowances (2)

—

(19,340)

(0.55)

Total special items

$

(34,361)

$

(50,862)

(1.45)

_____________

(1)

Organizational restructuring costs include severance expense included in direct costs and general and administrative expense from our voluntary and involuntary separation programs.

(2)

Relates to a one-time non-cash effect from tax items including a $75.6 million benefit related to the revaluation of net deferred tax liabilities to a lower tax rate resulting from the enactment of the Tax Cuts and Jobs Act in December 2017 and ongoing impact of valuation of deferred tax assets and recent financings of $1.0 million, partially offset by the impact of deemed repatriation of foreign earnings under the Act of $61.5 million for the three months ended December 31, 2017. Relates to a one-time non-cash effect from tax items including a $75.6 million benefit related to the revaluation of net deferred tax liabilities to a lower tax rate resulting from the enactment of the Tax Cuts and Jobs Act in December 2017, partially offset by the impact of deemed repatriation of foreign earnings under the Act of $61.5 million, the ongoing impact of valuation of deferred tax assets of $14.7 million and a one-time non-cash tax effect from repositioning of certain aircraft from one tax jurisdiction to another related to recent financing transactions resulting in additional income tax expense of $2.4 million for the nine months ended December 31, 2017. Relates to a tax valuation allowance of $3.7 million against net operating losses in certain foreign jurisdictions for the three months ended December 31, 2016 and a tax valuation allowance of $11.0 million against foreign tax credits and $8.3 million against net operating losses in certain foreign jurisdictions for the nine months ended December 31, 2016.

(3)

Relates to additional depreciation expense due to fleet changes.

(4)

Relates to impairment of goodwill of Eastern Airways in our Europe Caspian region.